Transaction Comps and LBO Modeling Exam Wallstreet Prep – Questions With Answers Latest Updated 2024/2025 Graded A+

Transaction Comps and LBO Modeling Exam Wallstreet Prep – Questions With Answers Latest Updated 2024/2025 Graded A+. What is generally not considered to be a pre-tax non-recurring (unusual or infrequent) item? - ANSWERExtraordinary gains/losses what is false about depreciation and amortization - ANSWERD&A may be classified within interest expense Company X's current assets increased by $40 million from while the companies current liabilities increased by $25 million over the same period. the cash impact of the change in working capital was - ANSWERa decrease of 15 million the final component of an earnings projection model is calculating interest expense. the calculation may create a circular reference because - ANSWERinterest expense affects net income, which affects FCF, which affects the amount of debt a company pays down, which, in turn affects the interest expense, hence the circular reference a 10-q financial filing has all of the following characteristics except - ANSWERissued four times a year. Depreciation Expense found in the SG&A line of the income statement for a manufacturing firm would most likely be attributable to which of the following - ANSWERcomputers used by the accounting department If a company has projected revenues of $10 billion, a gross profit margin of 65%, and projected SG&A expenses of $2billion, what is the company's operating (EBIT) margin? - ANSWER45% A company has the following information, 1. 2014 revenues of $5 billion,2013 Accounts receivable of $400 million, 2014 accounts receivable of $600 million, what are the days sales outstanding - ANSWER36.5 A company has the following information: Transaction Comps and LBO Modeling Exam Wallstreet Prep – Questions With Answers Latest Updated 2024/2025 Graded A+ • 2014 Revenues of $8 billion • 2014 COGS of $5 billion • 2013 Accounts receivable of $400 million • 2014 Accounts receivable of $600 million • 2013 Inventories of $1 billion • 2014 Inventories of $800 million • 2013 Accounts payable of $250 million • 2014 Accounts payable of $300 million What are the inventory days for the company? - ANSWER65.7 days Which of the following is true - ANSWERCoca Cola's brand name is not reflected as an intangible asset on its balance sheet A company has the following information: • 2014 share repurchase plan of $4 billion • Average share price of $60 for the year 2013 • Expected EPS growth for 2014 of 10% What should the number of shares repurchased by the company be in your financial model? - ANSWER60.6 million non-controlling interest - ANSWERis an expense on the income statement and equity o the balance sheet A company has the following information: • 2013 retained earnings balance of $12 billion • Net income of $3.5 billion in 2014 • Capex of $200 million in 2014 • Preferred dividends of $100 million in 2014 • Common dividends of $400 million in 2014 What is the retained earnings balance at the end of 2014? - ANSWER15 billion in order to find out how much cash is available to pay down short term debt, such as revolving credit line, you must take - ANSWERbeginning cash balance + pre-debt cash flows - min. cash balance - required principal payments of LT and other debt to calculate interest expense in the future, you should do which of the following - ANSWERapply a weighted average interest rate times the average debt balance over the course of the year enterprise (transaction) value represents the: - ANSWERvalue of all capital invested in a business A debt holder would be primarily concerned with which of the following multiples? I. Enterprise (Transaction) Value / EBITDA II. Price/Earnings III. Enterprise (Transaction) Value / Sales - ANSWER1 and 3 only On January 1, 2014, shares of Company X trade at $6.50 per share, with 400 million shares outstanding. The company has net debt of $300 million. After building an earnings model for Company X, you have projected free cash flow for each year through 2020 as follows: Year Free Cash Flow 250 280